The View from the Top

CABLE WORLD STAFF

Cisco Systems CEO/president John Chambers has come along way from his childhood in West Virginia.

Cisco, as much as any company, typifies the promise of the Internet that's translated into the huge run up on Wall Street. In this e-mail interview with Matt Stump. Chambers handicaps the race between broadband service pro-viders, and speaks about Cisco's increased role in front of consumers.

CW: How do you size up the strengths and weaknesses of the RBOCs, CLECs and cable operators in their ability to deliver broadband to consumers? Who's got the edge in the race?

First of all, I would expand your list to include all access players, such as wireless and satellite operators. As competition and deregulation change the playing field, we believe that all types of New World service providers will offer multiple services to the consumer.

We are moving away from an artificially segregated world where RBOCs deliver local telephony, cable operators deliver broadcast video, and ISPs deliver Internet access. We expect that all of these players will offer broadband services that leverage their current strengths.

For example, RBOCs have a high penetration of DSL-capable copper to the home; cable operators have high bandwidth coaxials deployed to their customers. Over the long-term, service providers will likely provide complementary broadband services over more than one of the key last mile technologies, such as cable, broadband fixed wireless or DSL.

A second important factor is the network and the Internet. We believe that Internet and IP architectures are fundamental to compete in a world where single service operators are disadvantaged. New World IP-based architectures give service providers the ability to personalize, package and brand service bundles, transforming networked devices to revenue-producing portals. Service providers that rely on IP-based infrastructure will be more competitive due to reduced customer churn.

With broadband access poised to enable a New World of information, communications and entertainment services, we're in an exciting time for consumers with broadband local access.

CW: What combination of wireline and wireless products do you see in the home in five years?

Broadband access to the home will create a new wave of networked devices, such as TVs, videophones, even kitchen appliances. In the future, you'll be able to access the Internet wherever and whenever you want, using innovations such as touch screens in cars, small kiosks, and portable Web slates.

You'll be able to program your handheld phone to remotely control your garage door opener, unlock your home for a locked out child, turn the security system off for a repairman or turn on the lights before you arrive home.

The networked home is closer than you might think. Earlier this year, Cisco and Whirlpool announced an agreement to jointly develop a complete line of Internet-ready home appliances such as refrigerators and ovens.

And we also announced the Cisco Internet Home Gateway, a new consumer product that will connect networked appliances with multiple Internet devices such as computers, PCs and TVs through standard phone jacks throughout the house.

CW: How strong an interest do you have in getting into the wireless business?

Cisco is deeply committed to providing wireless solutions. Our wireless strategy encompasses new technologies, products and solutions that can be deployed by both incumbent and new operators worldwide. We will deliver solutions for key spectrums of the radio frequency that will allow operators to deploy a single end-to-end networked solution regardless of spectrum.

By combining our networking expertise with strategic partners and other technologies, our customers will be able to deploy scaleable, manageable and cost-effective solutions worldwide. With our wireless solutions, service providers will be able to reach consumers who may not have had access to other broadband technologies. We are very excited about wireless.

CW: What do you want the average American to know about Cisco?

Great question. Simply put, Cisco wants to connect everyone to everything. That's not too tall an order, is it?

Data traffic on communications networks has already overtaken voice, and Cisco isn't alone in knowing that data and voice networks will soon converge. As this convergence progresses and everything in our homes and offices becomes networked, we want home and business consumers to look to Cisco as the best partner for data, voice and video solutions.

CW: Will Cisco be content to be a backroom player or is it going to want more branded visibility a la Lucent/AT&T with telephones or Motorola/3Com with modems?

First, I don't agree that Cisco is a backroom player. We are one of the most respected companies around and take great pride in delivering solutions to our customers.

In general, end user recognition is important to us, but we also value the success of our customers and take our cues from them. Therefore, if they look to Cisco for increased involvement in consumer products, we may become more visible in that space. As Cisco begins to move into the consumer market, through our Internet Home Gateway, etc., it will become more important for consumers to know our name.

CW: What's the model for working out the business and technical issues relating to ISP carriage on cable system pipes?

The overall goal should be to encourage the deployment of broadband Internet services at the cheapest prices as quickly as possible. Asking the government to regulate the process just as the market is becoming competitive between providers seems like the wrong way to go.

Cisco's philosophy is pretty simple: we believe it's important to have a rapid buildout of broadband Internet infrastructure because that will enable consumers to receive high-speed voice/video/data services at the lowest cost to work and home.

CW: I understand that you were born in West Virginia. Do you ever think about the technology Cisco's bought or created and how that impacts the people who were once your elementary school classmates? I'm curious to see how a man running the second largest market cap company in the world views his place in today's society.

I often say that there are two equalizers in life: the Internet and education. One's ability to succeed is based largely on how both are utilized. I hope that in some way Cisco has been able to touch the lives of many, including my fellow West Virginians, through increased access to the Internet, lower prices from service providers and through our Cisco Networking Academies. I really am proud of Cisco and what the team has been able to accomplish. I truly believe that we will reach our goal of being the most important company in the world.